Property News - March 2019
We are seeing steady buyer enquiries and open home numbers are averaging around five groups per open. Most homes are now selling through negotiation prior to auction because there are often only one or two serious buyers per property.
Auction clearance rates have lifted this week due to the holiday season coming to an end and buyers seeing more value in properties that are realistically priced for current market conditions.
Interest rates are expected to remain stable for some time but as credit conditions will remain tight we expect to see owner-occupier lending continue to decline.
The construction peak is now behind us as demonstrated by building approvals steadily reducing. However, there will still be plenty of homes coming to completion in 2019.
Morgan Stanley recently announced that they expected property prices to fall further in 2019 as they failed to see any signals for near-term improvements. Data from CoreLogic reported that Australia’s median home price has now fallen 8% from the peak if inflation is taken into consideration. Morgan Stanley believes this will increase to somewhere between 10% and 15% (in real, inflation-adjusted terms) since the peak in late 2017.
If you have any questions regarding the market or how best to navigate your property journey, we would love to help. Please call our team on 8303 1800.